The investment (as opposed to transaction) appeal of Bitcoins has grown and will grow. But we believe that Bitcoin will be very undesirable as an asset due to a very high degree of price volatility.

Woody Brock

Human beings are subject to behavioural biases, which negatively affect their ability to make rational choices. These behavioural biases create market inefficiencies that active investment managers can exploit to generate alpha.

Stuart Rae

A recent paper that addresses one of the most pressing issues facing the financial community - how to construct long-term investment portfolios to best fit the needs of those saving for retirement - questions the appropriateness of many commonly used techniques.

Ron Bird | 1.00 CE

The 2017 mid-year SPIVA report on fund manager performance came out recently. And, while we can expect to see the media dwell on the negatives, there are some big positives in the data.

Tim Farrelly | 3 comments

Value investing has proven successful over time but it requires discipline and a long-run horizon - and disagreement remains over whether the value premium will persist. What's your philosophy?

Philipp Hofflin | 4.00 CE

Many investors claim to follow a contrarian style. But it is important to distinguish between those who unthinkingly dismiss orthodox approaches, and those who meaningfully challenge them.

Stephen Anness

Portfolio insurance - invented over 40 years ago - has experienced the renaissance that it very much deserves. Trend (momentum) investing dates back over 40 years, too - the success of which is traced back in this paper to over 100 years.

Ron Bird | 1.00 CE

Two recent studies provide evidence that issues unrelated to the fundamental operation of a firm impact their market valuation.

Ron Bird | 1.00 CE

Research Roundtable helps identify quality investment solutions and their place in portfolios. This Resources Kit enables participants from the various Research Roundtable meetings to access the Strategy Reports that result from each meeting.

The "anomalies" literature is the scientific foundation for quantitative asset management. But as three recent papers point out, "p-hacking" is only the beginning of anomalies research problems.

Michael Edesess | 2 comments

Magellan is innovating again, this time raising money for what's been called a "monster" closed-end listed investment trust (LIT) with features that dramatically raise the bar for the standard model of closed end listed investment vehicles.

Dominic McCormick | 2 comments

Where can practitioners take on the world’s best investors and win? Actually, in quite a lot of places.

Tim Farrelly

The impact investing market will be worth US$1 trillion in coming decades. It is important for practitioners to realise the impact that their client's capital can have on society.

Richard Brandweiner, Giles Gunesekera & Tim Macready | 0.50 CE

With over 160 ETFs trading on the ASX, selecting the right ETF has become far more challenging. A simple yet effective due diligence framework is needed to assess suitability.

Jonathan Howie | 0.50 CE

Six key factors differentiate exceptional companies from their peers. These all add up to a business that generates exceptional returns for extended periods of time.

Kate Howitt | 0.25 CE

Managers must both develop and implement an investment process - but we seem to be determined to deny them recognition for the former and to judge their performance on the latter.

Ron Bird | 0.50 CE

Culture is at the heart of competitive advantage today - this is particularly the case for investment firms where people and their judgments are the chief assets.

Carol Geremia | 0.25 CE

Advisers are increasingly eschewing active managed fund managers, and instead are supplanting themselves as tactical managers of "passive" ETF funds.

Michael Kitces | 1.00 CE

The relationship between organisational culture and relative performance has significant implications for active asset managers, given their dependence on effective collaboration and decision making.

Portfolio Construction Forum

Do you know the impacts of the risk characteristics of your multi-manager portfolio? Better portfolio construction occurs when you don't diversify the risk you are trying to capture. Beware the benchmark hugger - it might be you?

Michael Furey

Investors often shy from investing in “non-traditional” sources of Risk Premia, but to maximise the probability of achieving positive excess returns, a well-diversified and risk-controlled mix of Risk Premium strategies is essential.

Capital Fund Management

The outcome of selecting an active management strategy will likely be greater when both the creativity and predictability of the candidate are considered in equal measure.

William Low

Culture is at the heart of competitive advantage today; this is particularly the case for investment firms where people and their judgments are the chief assets. A strong culture in investment management firms is a requirement for sustainable alpha-generation.

Carol Geremia

Using a Stage 4 investment analysis framework is a strong move towards a deeper understanding of portfolio risk drivers, and ensuring portfolios better reflect your investment philosophy.

Michael Furey | 2 comments

When it comes to the active versus passive investment debate, many investors believe the answer is black or white. But the issue is deeper than that.

Mugunthan Siva, India Avenue Investment Management

The head of ASIC says that hybrids are a ridiculous investment for retail investors. Are they? Yes and no.

Tim Farrelly | 5 comments

Masterclass NZ is a post-graduate extension program focused on contemporary issues that are fundamental to building better quality portfolios. The one-day program is comprised of five research-based, active learning sessions:

Literature from a variety of disciplines help highlight the qualities behind truly creative, contrarian thinking - qualities which can be applied to modern portfolio management.

Stephen Anness & Andy Hall

Unlike other commonly used factors, very little research has been undertaken on the quality factor - which makes a newly released paper very interesting. Another new paper extends the usual momentum factor into "returns signal momentum".

Ron Bird | 1.00 CE

Investors should keep a close eye on relative valuations. Recent data suggests that momentum and value are trading cheaply in many markets, with low beta substantially over-priced.

Rob Arnott, Research Affiliates

When equity markets fall, the financial and emotional impacts can be lasting. By focusing on reducing downside, investors can have a smoother ride and still achieve the returns they seek.

Roy Maslen & Hamish Fitzsimons, AB Global

Investing often creates moral dilemmas over goals. Should decent people put their money in emerging-market bond funds?

Ricardo Hausmann

After the ratings failures of CDOs and other complex instruments in the GFC, many dismiss the work of the ratings agencies. But far from being hopeless, they do a wonderful job of assessing companies.

Tim Farrelly | 1 comment

Factor investing has its foundation in the empirical studies of EMH. Via ETFs, we now live in a world where the possibility of factor investing is available to almost everyone. Three recent papers are useful in exploring further.

Ron Bird

Opinions in the active-passive investment debate have drifted poles apart over recent years. This paper revisits this discussion finding that, unlike their stock counterparts, active bond mutual funds have largely outperformed their median passive peers over the sample period.

Jamil Baz et al, PIMCO

Do professional investors do better when investing on their own behalf? What is the relationship between the remuneration of professional investors and performance? What role to gender and age play in the use of ETFs?

Ron Bird

Home ownership is of critical importance for retirees. But compulsory superannuation plays a major role in ensuring low-income earners never gain access to home ownership.

Ron Bird | 6 comments

Requiring investment managers to perform relative to a benchmark, including imposing tracking error constraints, causes short-term'ism.

Prof Ron Bird & Olivia Engel, CFA | 1.00 CE

A more realistic view of the world is that price appreciation drives negative gearing - not the other way around. Abolish negative gearing and nothing much happens.

Tim Farrelly | 11 comments

Markets Summit 2017 delivered 20+ high conviction ideas on how the winds of change are affecting the outlook for economies and asset classes - and delegates were asked to convert the insights into four fundamental portfolio construction decisions.

Will Jackson

The tectonic plates of the political and economic landscape are rupturing. Brace yourselves for a wild and entertaining ride...

Jonathan Pain | 1 comment | 0.25 CE

Applying discipline, fact and data to the assembly of a portfolio leads to investment opportunities overlooked by many who pursue their 'feelings' rather than data.

Kerr Neilson, Platinum Asset Management | 0.25 CE

Markets have run hard in recent months on speculative exuberance. However, the critical question is will President Trump prove to be a tailwind, or a headwind for the global economy?

Vimal Gor | 0.25 CE

The tectonic plates of the political and economic landscape are rupturing. Brace yourselves for a wild and entertaining ride...

Jonathan Pain | 0.25 CE

Bond-sensitive stocks now form a record 60% of the ASX's market cap. Australian equity investors should hold a greater proportion in real-asset stocks and reduce exposure to artificially inflated financial stocks.

Martin Conlon, Schroders | 4 comments | 0.25 CE

As 2017 began, there was (once again) an air of optimism that interest rates are about to return to normal. This optimism dismisses the significant structural headwinds that are prevalent.

Brett Lewthwaite, Macquarie Investment Management | 3 comments | 0.25 CE

When positioning a multi-asset, portfolio for the medium-term, there are four fundamental decisions we must make now. They are, in some cases, interdependent.

Tim Farrelly | 0.25 CE

A-REITs may face headwinds over the next two years, but total returns will likely remain positive, before returning to a more normal level of 8% to 10% per annum.

Damien Barrack, Renaissance Asset Management

For the foreseeable future, earnings of the infrastructure assets asset class, if defined in a disciplined manner, should continue to be reliable.

Gerald Stack, Magellan Asset Management | 0.25 CE

Investors should focus on asymmetric opportunities with a margin of safety and multiple ways of winning. Developed Asia and Europe offer these in abundance.

Jacob Mitchell | 0.25 CE

A large number of small, high conviction positions will lead to better outcomes for portfolios compared to a small number of large, high conviction positions.

Olivia Engel | 0.25 CE

Bond investors have enjoyed a multi-decade bull run in yields, fuelled by unsustainable post-GFC stimulus, but "the times they are a-changing".
It's time to rotate into loans!

Jeffrey Reemer, Invesco | 3 comments | 0.25 CE

There is a significant opportunity for actively managed Australian government bonds to continue to provide positive returns, while protecting against the storms of uncertainty.

Charles Jamieson, Jamieson Coote Bonds | 0.25 CE

Partners Group's Charles Dallara, Lazard's Ron Temple, and Magellan's Hamish Douglass debate the winds of change sweeping through the global economy and equity markets.

Panel | 0.25 CE

2017 will be a year of two halves: the first - trial and error, volatility and more setbacks than successes for Trump's economic policies; the second - a shift to less confrontation, more cooperation and a win-win for the US and the world.

Charles Dallara, Partners Group | 0.25 CE

With Trump, Brexit, Italy's "No" and China's currency woes, the world economy and markets have embarked on a journey into the unknown. Investors should aim for capital preservation until the veil of uncertainty over future policies starts to lift.

Joachim Fels, PIMCO | 0.25 CE

There is a significant opportunity for actively managed Australian government bonds to continue to provide positive returns, while protecting against the storms of uncertainty.

Charles Jamieson, Jamieson Coote Bonds | 0.50 CE

Governments must find a way to reconcile open markets with more evenly distributed income growth, or globalisation may reverse with dire implications for risk assets.

Jeremy Lawson, Standard Life Investments | 2 comments | 0.50 CE

In 2002, we embarked on a quest to identify the secular forces which would substantially influence markets over the coming decade. We proposed five megatrends - which still drive portfolio construction today.

Will Jackson

Senior secured loans offer a combination of strong current income with relatively low volatility given their defensive position in the capital structure and short duration.

Invesco